Actually, Bulgaria has well and truly earned its reputation as the hidden gem of Europe. Last year alone saw property prices increase by an average of 25 percent, with some of the fastest growing areas seeing rises of over 100 percent.

So have you missed the boat? Absolutely not! Many experts believe that the best is yet to come for this magnificent country.

Stability

One of the main reasons that Bulgaria has suddenly been seen as the place to invest is that it has achieved considerable stability, politically, economically and socially, in recent years. So much so that Bulgaria is set to become a member of the EU in 2007. Entry into the EU is likely to add fuel to the housing and tourist market, with foreign investors being able to purchase property directly, instead of having to purchase by setting up a Bulgarian company, as is the case at present. Those looking to buy in the country should note that there will be a considerable transition period and purchasing directly will not be available, immediately. Prices, however, are likely to begin rising, particularly from 2007 onwards.

Natural Surroundings

Bulgaria has one of the most varied terrains of all European countries. Most noticeable is the extensive Black Sea coast which has attracted a great deal of interest recently, with literally hundreds of opportunities for investors looking for a luxury beachside apartment at minimal cost.

As well as the traditional beach offerings, there are also some sprawling country areas that are practically untouched by modern technology, offering purchasers the possibility of a real bargain to renovate or a tranquil escape from contemporary living.

Skiers are also incredibly well catered for, with some of the best pistes in Europe, not to mention one of the longest skiing seasons in the world. When skiing is over for the year, the mountain areas offer wonderful scenery and a refreshing break from every day pressures.

Economic Investment

Another driving issue for Bulgaria is that international companies such as Kraft, Nestlè(c) and SAP are starting to invest heavily in the country. These large companies benefit from a qualified workforce at a fraction of western costs, in the country's capital, Sofia. As a result, employment is at an all time high and prospects are improving, every month, for the younger generation.

This increase in employment opportunities has led to a very healthy rental market for upmarket city apartments.

Tax advantages are also huge in Bulgaria, with some of the lowest taxes in Europe driving investment and growth.

Tourism

Of course, one of the driving factors in terms of rental potential is always going to be the tourist market. Last year, westerners quite literally flocked to the country to take advantage of the cheap costs of living and speedy transport links. Bulgaria boasts four international airports, all of which allow easy access to most parts of the country. A flight to Bulgaria from the UK takes, on average, less than 3 hours, making a quick getaway a very real option.

Travel companies are also flocking to the area, due to the country's cheaper labour costs and favourable climate, meaning that they can offer luxury holidays at rock bottom prices.

Traditionally, the only real downside of investing in Bulgaria was the risk of instability. With EU accession imminent, however, it seems that this worry has all but disappeared.

As a politically and economically sound country, Bulgaria seems to be very much on the up.

Investors would be wise to give this hidden gem careful consideration!